farmers' MUTT7AL INSURANCE COMPANIES* UNION. 337 



exception of a few outside companies not in the insurance union of stoclc 

 companies, and you will have to abide by the rate tixed by a single indi- 

 vidual appointed by them. 



Your company may have a standard of expenses, so far as your losses 

 are concerned, but it is largely dependent upon the judgment used by the 

 directors and the agents in the selection ot risks and the placing of poli- 

 cies. This is an important feature, and I am sure that every company in 

 our country can malie such records for themselves that the reports pre- 

 sented to our Mutual Union will inspire others to maKe a careful analysis 

 of their business and give it a closer scrutiny and examination with a 

 view to reducing the cost of insurance In their localities. The cost of 

 insurance can thus be reduced all over the country. 



In Massachusetts the stock companies fixed a rate of .$1.75 upon farm 

 risks. No farmer could be Insured for a less rate thiin that. We know 

 that is a very exorbitant rate. Not oulj- that, but they fixed the amount 

 that an insurance company could take on farm property. No company could 

 take to exceed fifteen hundred dollars on such farm property. There are 

 many fine farm homes and farm buildings in Massachusetts, houses and 

 buildings that cost from seven to ten thousand dollars, yet no company 

 could take to exceed fifteen hundred dollars on such a building. The 

 farmers were forced to go to the Legislature to get an enabling act for the 

 establishment of mutual companies. That was three years ago. Since 

 they have had the mutual companies they have reduced the insurance to 

 the farmer to 25 cents on a hundred dollars. 



All classes of people are now trying to get into the mutual companies 

 in Massachusetts, and the same thing is true in nearly all the New Eng- 

 land States. Wherever 1 have traveled in the United States 1 have found 

 that mutual insurance has driven out the stock companies so far as farm 

 risks are concerned. In the State of New Hampshire tliey have had 

 mutual companies for a great many years, and their risks are becoming 

 better, their losses fewer and the cost of insurance less on account of the 

 experienced men in the management. 



I would like to say that, in my judgment, a mutual insurance com- 

 pany in the selection of its officers and managers ought to select men with 

 qualifications and fitness, not try to pass the honors around among the 

 members. That is a most detrimental policy, because we need in these 

 positions men of experience, men of training and men of judgment. You 

 would not pursue such a policy in any other business in the world. If 

 you had a superintendent managing a business for you and he had done 

 it with success you would not think of changing because you wanted a 

 rotation in office. The effort of every member should be to reduce the 

 cost of insurance and save expenses. Good management, when once se- 

 cured, I think ought to be retained. Their experience n'ill sharpen their 

 ideas and will give them opportunity for securing business and saving 

 money. 



22— Agri. 



